About PEOs (Professional Employer Organizations)
PEO (Professional Employer Organization) is an external personnel provider. This includes various functions such as administration of income taxes, access to benefits, certain personnel functions, and other employer-related administrative functions. A PEO is an outsourcing company that provides services to small and medium-sized enterprises (SMEs). Typically, the PEO offer includes recruiting, security and risk mitigation services, payroll, employer's income tax, employee compensation insurance, health insurance benefits, employer practice and liability insurance (EPLI), and retirement vehicles (401 (k)), regulatory compliance, workforce management technology, and training and development. The PEO concludes a contractual cooperation agreement with its customers. The PEO outsourcing for the growing demand is as good as many organizations related to personnel and employee management, which triggers the growth of the PEO service provider market. In addition, the organization focuses on the benefits of reaping the benefits of its employees, as well as large companies, and PEO service providers for the growing demand.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The companies are now exploring the market by adopting mergers & acquisitions, expansions, investments, new developments in existing products, and collaborations as their preferred strategies. The players are also exploring new geographies and industries through expansions and acquisitions so as to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that United States Manufacturers will contribute the maximum growth to Global PEOs (Professional Employer Organizations) market throughout the forecasted period. Established and emerging Manufacturers should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
ADP, LLC (United States), Pinnacle PEO Corp (United States), Synergy HR (United States), Insperity (United States), TriNet (United States), Paychex (United States), Human Capital (United Kingdom), TEL Staffing & HR (United States), Oasis Outsourcing, LLC (United States), Ahead Human Resources (United States), Group Management Services, Inc. (United States), Alcott HR (United States), Total HR (United States), Algentis (United States), CoAdvantage (United States), FrankCrum (United States), Premier Employer Services, Inc. (United States), XcelHR (United States), Abel HR (United States) and AccessPoint (United States) are some of the key players that are part of study coverage. Additionally, the Manufacturers which are also part of the research coverage are Acadia HR (United States), Emplicity (United States), Employer Solutions Group (United States), Justworks, Inc. (United States) and OneSource Business Solutions (United States).
Segmentation Overview
AMA Research has segmented the market of Global PEOs (Professional Employer Organizations) market by Type (Full-Service PEO and ASO), Application (Large Enterprises and Small and Medium Enterprises (SMEs)) and Region.
On the basis of geography, the market of PEOs (Professional Employer Organizations) has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
If we see Market by , the sub-segment i.e. will boost the PEOs (Professional Employer Organizations) market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.Influencing Trend:
Rise the Adoption of the PEO Outsourcing That Drives the Growth of the PEO Service Provider Market and Implementation of Artificial Intelligence in the Organizations
Market Growth Drivers:
Increasing Demand for the PEO Service Provider among the Small and Medium-Sized Enterprises, Growing Demand for Efficient Management, Increasing Demand from the End Users and Growing Number of Small Businesses across the Globe
Challenges:
Lack of Awareness
Restraints:
Short Term Restraint for the Market Due to Shutting Down of Operations & Process of Different Companies Across the Different Parts of the World Due to COVID-19 Pandemic
Opportunities:
Growing Adoption of SMEs Propelled by Rising Number of SMEs Globally
Market Leaders and their expansionary development strategies
In January 2022, Paychex announced a team-up with HireRight to Offer COVID-19 rapid test kits to support businesses managing workplace testing for employees.
Key Target Audience
Service Providers of PEOs (Professional Employer Organizations), End-Users, Potential Investors, Market Research Firms and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.